IMF Approves $1.3B Loan for Climate Resilience
The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan, introducing a new 28-month, $1.3 billion loan under the Resilience and Sustainability Trust (RST) to support climate resilience initiatives.
This agreement is contingent upon Pakistan’s successful completion of its ongoing $7 billion Extended Fund Facility (EFF) program. Upon approval by the IMF’s executive board, Pakistan will gain access to approximately $1 billion from the EFF, bringing total disbursements under the program to about $2 billion.
The disbursement of funds will be tied to the completion of each six-monthly economic review under the EFF. The IMF Executive Board is expected to approve the financing within four to six weeks, though potential delays may arise due to the Fund’s annual spring meetings.
The 37-month EFF requires periodic reviews, with each successful evaluation unlocking both the next tranche of economic assistance and a portion of the climate financing. The climate financing program itself is set to run for 28 months sources indicated.
